Using a blockchain to maintain their internal ledgers means they have complete control over that blockchain, so they can manipulate it all they want. Blockchains aren’t magic.
A blockchain won’t solve incorrect transaction information any more than an audit log in this case. This is an entirely internal process controlled by the bank and access would be restricted, so they couldn’t just edit audit logs. How do you think a blockchain would be used to improve this?
The actions that an employee could perform would be limited by their private key’s abilities. Blockchain can be preventative. It’s not only for retrospective analysis.
The actions that an employee could perform in any database would be limited by their account permissions. Blockchain doesn’t change this. I pointed out a retrospective mechanism because a completely internal blockchain wouldn’t prevent tampering either.
It’s not complicated at all. It’s basic database access management and it’s been a thing for decades without issue. If external access is required then those parties are given restricted access appropriate for their job and their actions are logged in the audit log in case any inappropriate actions were taken by them and need to be reviewed/reversed. These are solved problems and blockchain adds nothing there. The only case that blockchain helps is in a system where you have a large number of random participants and you want transactions to be enforced by work done/computing power or stake. This is why cryptocurrency has been the only practical use case for blockchain, with the word “practical” doing a lot of work, hence the diagram in the post we’re all discussing.
Why would you want the computational power of a bank system have anything to do with whether it’s ledger is correct?
Banks/hackers can manipulate data if they want to. Manipulating data on blockchains is way waaaaay harder.
Using a blockchain to maintain their internal ledgers means they have complete control over that blockchain, so they can manipulate it all they want. Blockchains aren’t magic.
Oh, didn’t see the “internal”. Yea, that’s stupid then.
Who are “they” in the above message?
If you trust all your employees then an internal blockchain is useless, but do banks really totally trust their employees?
A blockchain won’t solve incorrect transaction information any more than an audit log in this case. This is an entirely internal process controlled by the bank and access would be restricted, so they couldn’t just edit audit logs. How do you think a blockchain would be used to improve this?
The actions that an employee could perform would be limited by their private key’s abilities. Blockchain can be preventative. It’s not only for retrospective analysis.
The actions that an employee could perform in any database would be limited by their account permissions. Blockchain doesn’t change this. I pointed out a retrospective mechanism because a completely internal blockchain wouldn’t prevent tampering either.
You end up with a very complex database account management.
I agree in general. Fully internal databases should not be blockchains.
But if external access is required at any point then there may be a blockchain use case.
It’s not complicated at all. It’s basic database access management and it’s been a thing for decades without issue. If external access is required then those parties are given restricted access appropriate for their job and their actions are logged in the audit log in case any inappropriate actions were taken by them and need to be reviewed/reversed. These are solved problems and blockchain adds nothing there. The only case that blockchain helps is in a system where you have a large number of random participants and you want transactions to be enforced by work done/computing power or stake. This is why cryptocurrency has been the only practical use case for blockchain, with the word “practical” doing a lot of work, hence the diagram in the post we’re all discussing.